Timeshare arrangements have become more prevalent between hospitals and physicians as a cost-effective way to evaluate the possibility of expanding into surrounding geographical markets, providing convenience to an active patient base, and increasing the quality of care to patients.

By leasing on a part-time basis, the tenant avoids the risks associated with a full-time arrangement which is advantageous to the bottom line. The landlord of a timeshare suite may offer a wide variety of services to the tenant. The services may be limited to use of the space and furniture & equipment only, but more likely will include an array of services, such as space and other occupancy services (utilities, janitorial, pest control, security, alarm, etc.), furniture & equipment, staffing, telephone, internet, coffee service, water service, hazardous waste disposal, paper shredding service, subscriptions/periodicals, medical supplies, office supplies, cable television, etc.

The amount of time a tenant utilizes the timeshare services also varies. Typically, timeshare space is offered in half-day time slots, with a total of 10 half-day slots available per week. Depending on the timeshare set-up, the space and services can be used either exclusively by the tenant or shared by the tenant and landlord if the landlord is utilizing the space at the same time.

HMS Valuation Partners understands the importance of a comprehensive fair market value opinion and the critical necessity to include all costs and terms of the arrangements to remain compliant with Stark law. Regarded as a leader in the industry, HMS Valuation Partners has encountered and valued the most complex timeshare lease arrangements. Our clients rely on our expertise and experience, along with our ability to be practical and accurate, to generate reliable fair market value opinions related to landlord/tenant timeshare lease arrangements.

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